United stock dives amid bankruptcy discussion

CHICAGO -- United Airlines said Friday it had begun urgent talks to win over mechanics who rejected wage cuts the company considers key in its bid to get badly needed loans.

Wall Street analysts said bankruptcy for the world's No. 2 airline appears all but certain.

With hefty debt payments and other challenges looming, there's almost no time left for United to find the financial backing it needs to avoid filing for bankruptcy protection.

Bankruptcy concerns prompted a heavy sell-off of United stock Friday. Shares in United parent UAL Corp. plunged $1.12, or 31 percent, to close at $2.51.

Other workers have agreed to a total of $5.2 billion in companywide labor cuts over 5 1/2 years, but mechanics' rejection of their $600 million share Wednesday put United's financial recovery plan in limbo as its cash reserves rapidly dwindle.